Sri Lanka’s BFSI sector explores bold digital future at ‘Navigate 2025’

By Michelle Therese Alles

In a move signalling the next chapter of digital transformation for Sri Lanka’s financial sector, global engineering services leader Nagarro, in collaboration with the Computer Society of Sri Lanka (CSSL) and the IIBA Colombo Chapter, hosted Navigate 2025, an exclusive, high-level event focused on “Harnessing Emerging Tech for Elevating BFSI in Sri Lanka”.

Exploring how technologies such as Agentic AI, Generative AI, Intelligent Process Automation (IPA), and Quantum Computing are redefining the future of financial services, over 50 industry leaders from banking, finance, and insurance circles met to exchange insights and explore these emerging technologies.

Delivering a thought-provoking keynote, Nagarro Associate Director – Delivery (BFSI) Vishal Saxena showcased five trends currently shaping the global BFSI landscape:

Designed specifically for industries like finance and insurance, Small Language Models (SLMs) handle tasks such as claims automation and KYC checks with high accuracy. These models are ideal for firms navigating strict regulatory environments because of their lower infrastructure demands and ability to be deployed on-premises.

Sustainable Finance is another area where technology is playing a crucial enabling role. From blockchain-powered green bonds to AI-driven climate risk assessments, digital tools help institutions offer more transparent and credible ESG-aligned investment products.

Intelligent Process Automation (IPA) combines AI and machine learning to make context-based decisions, streamlining everything from compliance checks to customer onboarding. Unlike traditional automation, which handles routine tasks, IPA usage results in faster processing times, improved accuracy, and higher returns on tech investment.

Conversational analytics is another emerging approach allowing business users to interact with data using everyday language. By eliminating traditional bottlenecks, it makes data-driven decision-making faster and more accessible to non-technical teams.

Saxena also highlighted Quantum Computing, a fast-approaching solution with the capacity to solve complex calculations at an unprecedented speed, offering transformative potential across areas such as fraud detection, risk analysis, and portfolio optimisation.

Insights from the front lines

The panel discussion, moderated by Janashakthi Group CIO K.V. Kuganathan, brought together Commercial Bank CIO Sumudu Gunawardhana, Softlogic Life Chief Digital Innovation Officer Saranga Wijayarathne and DFCC Bank CIO Vindya Solangaarachchi, focused on the opportunities and realities of driving digital transformation within regulated environments.

“In this industry, you can’t afford delays,” stated Gunawardhana, stressing the complexity of balancing speed, compliance, and customer service in banking along with the importance of strong APIs and aligned vendor relationships to maintain compliance whilst keeping pace with innovation.

Wijayarathne shared how automation is already delivering a measurable impact in the insurance space. “Today, 75% of our hospitalisation claims are settled within two minutes using AI. About 35% of our claims are processed without any human intervention,” he revealed. “This level of efficiency has allowed the company to triple its policy volumes without expanding operational teams.”

Solangaarachchi highlighted the importance of real-time data access, pointing out how consolidating insights from across systems has led to better, faster decisions at all levels of the bank. “Traditional, hierarchical workflows are giving way to task-based and cross-functional collaboration, enabling faster time-to-market and more responsive service delivery,” he said, noting the cultural shift underway in the banking sector.

Driving collaboration, inclusion, and customer-centric innovation

The panel highlighted the increasing importance of close collaboration between business and technology teams. They discussed the pressure on tech leaders to deliver quickly while remaining aligned with compliance requirements and evolving business needs, pointing out the critical role of strong partnerships and cross-functional coordination in driving innovation.

They concluded that while regulation and legacy systems present ongoing challenges, Sri Lanka’s BFSI leaders are navigating them with a shared focus on agility, insight, and collaboration.

The path forward

Another major focus was the shift toward personalised, data-driven customer experiences, with comparisons drawn to global platforms like Booking.com. The panellists noted that financial institutions must better understand customer behaviour and tailor offerings in real-time, whether in banking, insurance, or fintech.

They also mentioned the broader impact of technology in enabling gender inclusion and green finance, acknowledging a rising focus on financial products designed to empower women and support sustainability goals—areas rich with opportunity and aligned with national development priorities.

 Pix by Upul Abayasekara